2 Question 4 (part 2 of 2) GinFizz Ltd. produces kitchen tools, and operates several divisions as profit centers. Division M produces a product that it sells to other companies for $16 per unit. It has a maximum capacity of 45,000 units per year. Variable manufacturing cost is $9 per unit, and variable marketing cost is $3 per unit. Total fixed manufacturing overhead is $200,000, and fixed marketing costs are $60,000. Division N of GinFizz Ltd. is planning to produce an innovative new tool that requires the use of Division M's product (or one very similar). Division N will require 30,000 units of Division M's product. Currently, Division N can purchase a product equivalent to Division M's from Company X for $15 per unit. However, GinFizz Ltd. is considering transferring the necessary product from Division M to Division N. Required: b. Assume Division M is operating at 80% of full capacity and Division N accepts no partial order. What would be the minimum and maximum transfer price? Should the transfer take place? (6 marks) KA

Queration 4 (pat \\( z \\) or 2 ) ing averhead is 5200.000 , and fixed maketing conts are \\( \\$ 40 \\), 000 . Required: b. Assume Division \\( \\mathrm{M} \\) is operating at \80 of full capacity and Division \\( \\mathrm{N} \\) accepts no partial order. What would be the minimum and maximum transfer price? Should the transfer take place? (6 marks)